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McDonough Marine asks commission to revise hopper‑barge definition after disputed assessments
Summary
McDonough Marine Service told the Louisiana Tax Commission that using a single high‑value table for all hopper barges inflated assessments of its mud‑shale barges and asked the commission to broaden the hopper‑barge definition and expand the valuation tables.
McDonough Marine Service, doing business as Marmec LLC, asked the Louisiana Tax Commission on July 16 to revise the commission’s hopper‑barge definition and expand the fair‑market‑value tables used to value hopper barges. Company representatives said parish assessors in 2023 and 2024 applied a table appropriate to high‑value "dump scow" hopper barges to other hopper‑barge types, raising assessed values substantially above McDonough’s construction costs.
Craig Brewer, representing Marmec LLC, described the dispute: he said the company presented actual fabrication costs of $797,000 per barge for mud/shale hopper barges built in February 2015 and proposed a fair‑market value of $693,000 for those barges in 2023 filings. Instead, the parish used table values that produced reference valuations in the $1.3 million to $2.5 million range for 2015‑era hopper barges.
Brewer and company president Patrick Stant explained to commissioners that ‘‘dump scows’’ are a specialized hopper‑barge subtype that can open bottom doors and discharge their cargo by themselves, a feature that substantially raises construction cost. By contrast, classic covered or open hopper barges and McDonough’s mud‑shale barges are non‑self‑dumping: they require cranes or other equipment to unload and therefore sell at lower market values. Stant said McDonough built the disputed barges at Trinity in Port Allen.
McDonough asked the commission to modify the chapter‑7 definition of hopper barge to capture the range of hopper‑barge designs and to work with industry and assessors to create additional table rows so the valuation tables reflect different subtypes. Brewer said the company’s preference is to refine the definition collaboratively rather than unilaterally setting new numerical values.
Commissioners asked clarifying questions but did not take action. Chair Russo said the commission will consider the written proposal and may request follow‑up; McDonough said it was willing to work with assessors to develop alternative table entries. Brewer said the current tables produce more disputes and appeals when a single table is applied to multiple, materially different barge types.
No vote was taken; the matter will continue in the rulemaking record ahead of the August rebuttal hearing.
